ChoiceTrade Review



I’m not sure how ChoiceTrade has been able to pull it off, but they have managed to completely hide themselves from me. In spite of the fact that the company was established back in 1999, I had not heard of them until recently.

ChoiceTrade is a small, privately held trading firm based in New Jersey, and strives to provide its investors with state-of-the-art, cutting edge trading platforms and services.

ChoiceTrade caters to self-directed investors who are looking for low commissions on trades and a variety of trading platforms with witch to trade from.

It is important to take a thorough look at each potential brokerage prior to investing in order to find the stock broker that is best for you.

Let’s look at the fees

The first thing that caught my attention was that ChoiceTrade is offering a flat $5 per stock trade and 99c for options. This flat fee even applies to penny stocks as well.  That can be a huge draw for investors whose trading plans call for frequent trading, which can quickly eat away at returns as the fees and commissions pile up.

After some investigation I managed to find out their is a whopping $30 surcharge for broker-assisted trades. This is a steep, but if you don’t plan on phone trading, it won’t be an issue.

I asked them about inactivity fees, they told me they don’t have any. That’s good to hear, because inactivity fees really annoy me due to the fact that they are great way to unknowingly lose money.

Account Minimum

ChoiceTrade have no account minimum for cash accounts, they do however have a $2,000 minimum for margin accounts.

Support

Support is offered by online live person chat, phone and email. I have tested out the phone and live person and they were always able to answer my questions adequately.  This is crucial for both beginning and seasoned investors.  Never underestimate the importance of high-quality customer support.

The Platform

This is where things get a little interesting. Most discount brokers just give you a platform to drive with at no additional cost. However, with ChoiceTrade this is not the case. They do not have just one platform for you to utilize, they have three different platforms for you to choose from.

There’s the basic platform, but it costs an additional $14.95 a month. You do get this platform free for 4 months if you open your account with $2,000 or more.

There’s the advanced platform that offers some more advanced charting as well as mobile charting. This costs $23.95. There’s also the advanced platform with esignal included. This costs $126.

Esignal is a very comprehensive charting package that has been around for many years, and is ideal for technical traders.

They do offer a free platform as well, but again it’s very limited.  You choice of what platform to use will depend on your investment objectives and skill level.

Awards

They have awarded a 4 star rating from Barrons for 5 years running. This is quite an impressive achievement and should be taken into consideration when choosing a brokerage.

Conclusion

This stock broker caught my attention because of the low commissions on trades. On the whole, I like Choicetrade. One thing i’m not keen on is the $14.95 a month they charge for their basic platform. This equates to the cost of three stock trades a month.

If you are going to make a lot of trades, then it probably won’t make a big difference, but if you are a long term investor who doesn’t make a large number of trades, this could have quite an affect on your trading costs and should be considered when calculating your potential investment returns.

Click here to join ChoiceTrade




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